Real Estate News

The BCREA released a new report today that shows 8,945 residential unit sales recorded by the MLS in August, (with a total sales volume of $5.1 billion) which is an increase of 1.5% from August of last year.

"Strong housing demand across most regions of the province offset slowing home sales in Vancouver last month," said Cameron Muir, BCREA Chief Economist. "The newly introduced 15 per cent foreign buyer tax combined with the 3 per cent property transfer tax on homes over $2 million brought in earlier this year, slowed demand at the top end of the market in Vancouver last month."

Year to date sales volume incrased 39.1% to $61.6 billion compared to the same period in 2015.

Today, the British Columbia Real Estate Association (BCREA) released its 2016 Third Quarter Housing Forecast Update. Residential sales are forecast to climb 10.4% to a record level of 113,000 units for 2016, which surpasses the record of 106,310 that was set back in 2005. However, demand is expecting to slow next year by nearly 8 percent to 104,400 units, while it still remains above the ten-year average of 85,000 sales per year.

"The introduction of a 15 per cent tax on foreign national home buyers in Metro Vancouver is expected to accelerate a moderating trend in the market that began earlier in the year," said Cameron Muir, BCREA Chief Economist. "However, other regions of the province are performing above expectations and at the provincial level, largely offsetting Metro Vancouver's deceleration."

Average residential prices in the province are forecast to continue to increase 11% to $706,900 this year, and another 5.2% in 2017.

While the total value of Canadian building permits declined 1.9% in May, BC continued to grow, growing 2.2% from April to May. This continues BC's trend of month-to-month, and year-over-year growth in BC, with year-over-year growth coming in at over 20.3% from May of last year. For more information the full report is below:

BCREA ECONOMICS NOW

Canadian Building Permits - July 7, 2016

The total value of Canadian building permits declined 1.9 per cent on a monthly basis in May as lower construction intentions in Ontario and Quebec offset strong gains in other provinces, including the BC non-residential sector.

In BC, total permit activity increased 2.2 per cent from April to May and posted a third consecutive month of over $1.1 billion in permits. On a year-over-year basis, the dollar value of building permits in the province was 20.3 per cent higher than May 2015, led by a 22.6 per cent increase in non-residential permits. Residential activity was slightly lower on a monthly basis in May, but was up 19.5 per cent year-over-year, indicating that new home construction should remain strong in subsequent months.

Construction intentions were mixed in BC's four census metropolitan areas (CMA). Permits in the Abbotsford-Mission CMA jumped close to 40 per cent on a monthly basis but were 4.9 per cent lower year-over-year. In the Kelowna CMA, permits fell almost 7 per cent from April but were 27 per cent higher year-over-year. In the Vancouver CMA, permits increased 9 per cent on a monthly basis and were up 23 per cent year-over-year. In the Victoria CMA, permit activity was down 23 per cent on a monthly basis but was up 26.6 per cent compared to May 2015.

The BCREA has reported that residential unit sales in May have increased to 13,458 units sold, which is an increase from Aprils 12,969 units sold, and also a growth of 32.2% since the same month last year.

The total dollar value of sales in May was $9.72 billion in May which is up 51.5% compared to the previous year.

The full report is below:

Record Home Sales Creates Wave of New Home Construction

Vancouver, BC – June 15, 2016. The British Columbia Real Estate Association (BCREA) reports that a record 13,458 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in May, up 32.3 per cent from the same month last year. Home sales last month exceeded April’s record of 12,969 units. Total sales dollar volume was $9.72 billion in May, up 51.1 per cent compared to the previous year. The average MLS® residential price in the province was up 14.2 per cent year-over-year, to $722,146.

“Record housing demand and dwindling inventories are continuing to push home prices higher in most BC regions,” said Cameron Muir, BCREA Chief Economist. “Total active residential listings across the province are nearly 30 per cent lower than twelve months ago.“

“New home construction activity is at a near record pace in the province,” added Muir. In the Metro Vancouver market, a record number of homes are now under construction. “Once the current crop of homes are ready for occupancy there will likely be more selection for home buyers and less upward pressure on home prices."

Year-to-date, BC residential sales dollar volume increased 62 per cent to $41 billion, when compared with the same period in 2015. Residential unit sales climbed by 35.2 per cent to 54,455 units, while the average MLS® residential price was up 19 per cent to $752,105.

Canadian housing starts declined by 1.5% in May, with the 6 month trend in Canadian housing also down, however in-line with growth in Canadian households.

BC housing starts cooled off from the near record-setting pace from the first five months of the year with a 23% decline from April's pace.

The full report is below:

Canadian housing starts declined 1.5 per cent in May to 188,570 units at a seasonally adjusted annual rate (SAAR). The six-month trend in Canadian housing starts of 191,000 was also down slightly and remains roughly in-line with growth in Canadian households.

Housing starts in BC cooled off of the near record-setting pace from the first five months of the year, recording 35,312 units at a seasonally adjusted annual rate, a 23 per cent decline from April's torrid pace of 45,000 units.New home construction was driven higher by growth in apartments and other multi-family units, which were up 34 per cent on a year-over-year basis while single-detached starts were 32 per cent higher compared to last May.

Looking at census metropolitan areas (CMA) in BC, total starts in the Vancouver CMA were up 36 per cent year-over-year in May due to broad strength in both multiple and single units. New home construction in the City of Vancouver, Surrey and Langley was particularly strong last month. In the Victoria CMA, housing starts of both single and multiple units more than doubled year-over-year with 224 total units breaking ground. New home construction in the Kelowna CMA surged 196 per cent, compared to one year ago, largely as a result of large condo projects getting underway. Housing starts in the Abbotsford-Mission CMA were also up sharply, rising 179 per cent year-over-year in May.

MLS Listings sales rose 12.3% to a continued record of 115,2000 units, which has surpassed the previous record of 106,310 units in 2005, while housing demand is expected to pull back slightly to 105,600 in 2017. There are strong economic fundamentals that are expected to produce above average consumer demand throughotu 2017.

The average residential price in the province is predicted to increase 20.4% to $766,600 this year and a further 3.4% to $792,800 in 2017. New home construction starts are expected to increase 20% to 37,800 units this year, and then decline down to 34,200

In April, a record of 12,969 residential unit sales were recorded by the MLS system, which is an increase of over 30% from the same month last year! Home sales last month beat MArch's record of 12,5600 units, with a total dollar volume of $9.64 billion in April, which was also up 52.7% compared to the previous year. Furthermore, average residential house prices in the province is up over 17% year-over-year, to $743,640.

A recent report from the BC Real Estate Board announced housing starts across Canada and the Province of British Columbia. While Canadian housing starts declined 5% in April after several months of robust construction, the number of housing starts in BC continued at a blistering pace, growing 14% to 45,591 units. This new construction is driven by both multi-family units as well as apartments (up 34%) while single-detached homes were up 2%.